Aussie law firms risk knowledge drain from lack of documentation

The report found, among other things, that over half of law firms globally lack adequate knowledge retention documentation – a challenge that is particularly pronounced Down Under.

The findings show that 53 per cent of firms have a limited or no documentation process for knowledge retention when employees leave, and that ANZ firms lag behind in knowledge documentation and employee training compared to their counterparts in the UK/IE and the US/CA.

“The data clearly shows that ANZ firms are falling behind their global counterparts in capturing critical knowledge,” said Agile Market Intelligence director Michael Johnson.

“Without robust documentation processes, expertise walks out the door every time an employee leaves, creating gaps that can take months to fill.”

Nearly half of firms (47 per cent) report having documentation processes that at least “mostly” retain knowledge when employees leave, including 9 per cent that say their processes capture all knowledge. Meanwhile, 40 per cent have limited documentation, and 13 per cent have none at all, highlighting an almost even split in knowledge retention maturity across global firms.

Zooming into regional nuances, ANZ emerges as a key drag on the global knowledge retention average, with 26 per cent of firms reporting no formal documentation process when employees leave, double the global average. Furthermore, only 27 per cent of ANZ firms have processes that at least “mostly” retain expertise, well below 56 per cent in the UK/IE and 57 per cent in the US/CA.

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As one Australian lawyer noted in the report, “Many people handle something themselves from beginning to end or are the only author who can handle that one type of matter, so when they leave, things often fall apart.”

Regional firms are also falling behind in training and development: globally, 60 per cent of firms report having good or excellent staff training and expertise, but just 50 per cent of firms in ANZ rate their training programs and support as good or excellent, lagging 10 percentage points behind the global average.

“With only 50 per cent of ANZ firms reporting good or excellent training, there’s a real risk [that regional] firms will develop skills gaps compared to global peers,” Johnson said.